GrCF2 W2 - Almaty Electric Public Transport

Location:

Kazakhstan

Project number:

51583

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

12 Oct 2021

Status:

Concept Reviewed

PSD disclosed:

06 Aug 2021

Project Description

The EBRD is planning to provide a senior loan of up to KZT 29 billion (€ 57.4 million) to Almatyelectrotrans LLP (the Company), a municipal public transport company in the city of Almaty (the City). It is envisaged, that the loan will be used to finance (i) the acquisition of up to 190 modern, energy efficient trolleybuses to renew the company's existing fleet, (ii) the procurement of trolleybus maintenance machinery and equipment, and (iii) the rehabilitation of up to 10 power supply sub-stations. The company is a public transport entity 100 per cent owned by the city. The city will provide a grant co-financing of KZT 10.9 billion (€ 21.6 million) for the (iv) depot facilities rehabilitation, and (v) the modernisation of the trolleybus infrastructure in the city.

Project Objectives

The Project is aimed at improving public transport services in the city in terms of quality, reliability, sustainability and environmental, health and safety standards. The project contributes to the reduction of GHG emissions through energy efficiency increase. The project is a 'trigger project' under the EBRD's Green Cities Framework 2 (the "GrCF2") under which development of the Green City Action Plan ("GCAP") for Almaty will be covenanted in the financing agreements.

Transition Impact

ETI score: 70

The project fully complies with the transition objectives of the Bank's GET approach and Green Cities Framework, focusing on Green as the primary transition quality through the reduction of GHG emissions and GCAP development.

The project also contributes to the well-governed quality, as it envisages (i) amendment of the Public Service Contract between the Company and the City to incorporate the trolleybus-km concept; (ii) update of the Corporate Development Programme ("CDP") to further improve the Company's operational procedures and commercial standing, service and environmental performance.

Client Information

ALMATYELECTROTRANS LLP

The company manages the operation of around 800 buses and 190 trolleybuses on a daily basis carrying around 160 million passengers per year (35 per cent of the total city's passenger traffic, including 10 per cent covered by trolleybus operations). The company services 57 bus and 9 trolleybus lines, with a total route length of around 3,000 km and 250 km respectively. The Company owns 4 bus and 1 trolleybus depots including 18 active power supply sub-stations with a total capacity of more than 55 MW. The total number of employees is around 2,500.

 

EBRD Finance Summary

KZT 28,999,999,488.00

Senior secured loan of up to KZT 29 billion (€ 57.4 million). The loan will be backed by a Project Support Agreement ("PSA") to be signed between the Bank, the municipality ("City Akimat") and the company.

Total Project Cost

KZT 39,900,000,256.00

A co-financing of KZT 10.9 billion (€ 21.6 million) to be provided by the city for the depot rehabilitation and modernisation of the trolleybus infrastructure in the city.

Additionality

The Loan is a subsequent transaction with the same client in Kazakhstan Additionality sources include the following components: (i) financing structure; (ii) risk mitigation; (iii) support to achieve higher standards; and (iv) knowledge, innovation, and capacity building.

Environmental and Social Summary

Categorised B in accordance with the EBRD's 2019 Environmental and Social ("E&S") Policy. Key E&S impacts/risks to consider include overall EHS management capacity and performance, labour, health & safety and road safety practices and standards. Environmental and Social Due Diligence ("ESDD") is currently being undertaken by an independent consultant as part of the Feasibility Study and includes a review of the current status of the Client's existing management systems and operations with specific attention to the maintenance depots, electrical safety issues, road safety and driver training, labour practices, equal opportunities and gender, waste management and disposal of the old fleet, accessibility and mobility for all user groups, affordability issues, stakeholder engagement and grievance mechanism. It also includes an analysis of the E&S benefits and impacts associated with the Project. An Environmental and Social Action Plan will be developed to structure the Project to meet the EBRD PRs, as well as a Stakeholder Engagement Plan. This section will be updated upon completion of ESDD.

Technical Cooperation and Grant Financing

Pre-signing:

-       TC 1: Project Preparation: € 200,000; financed by the EBRD Shareholder Special Fund ("SSF").

 Post-signing:

-       TC 2: Development of the Green City Action Plan: € 300,000; financed by the Government of Austria.

-       TC 3: Procurement Support: up to € 400,000; to be financed by an international donor or SSF.

-       TC 4: Corporate Development Programme: up to € 150,000; to be financed by an international donor or SSF.

-       TC 5: Pre-shipment Inspection: up to € 150,000; to be financed by an international donor or SSF.

Company Contact Information

Berikhan Murzakarimov, General Director
press@aet.kz
+7 (727) 313-27-84
http://aet.kz/
67 Tole bi str, Almaty, 050000, Kazakhstan

PSD last updated

02 Sep 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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